Goodbye DFS, hello Lotte: South Korean giant to take over liquor, tobacco duty-free at Changi in June

At left, logo of Lotte Duty Free. At right, view of DFS’s liquor and tobacco duplex. (Photos: Lotte Duty Free/Facebook, DFS Singapore/Facebook)
At left, logo of Lotte Duty Free. At right, view of DFS’s liquor and tobacco duplex. (Photos: Lotte Duty Free/Facebook, DFS Singapore/Facebook)

South Korea’s Lotte Duty Free has been awarded the liquor and tobacco concession at Changi Airport Group (CAG), it was announced today, two months after DFS revealed it would be bidding the airport adieu after 40 years. 

Lotte, part of a sprawling conglomerate with its fingers in everything from hotels to fast food, will take over from DFS for six years starting in June at the 18 stores across the airport’s four terminals, spanning more than 8,000 square meters, CAG’s statement said. The façade of the liquor and tobacco duplex store at Terminal 3 will also undergo a revamp when Lotte takes over.

When DFS revealed it’s planned exit in late August, it told local press that retaining the liquor and tobacco concessions it has held since 1980 was no longer a “financially viable option” amid uncertainties in the global economy. 

While that was the first time the general public had heard about DFS’ decision, the airport was already apparently hard at work on finding a replacement. According to The Moodie Davitt Report business site, the tender process for a new concessionaire had already begun in June and finished by Aug. 26, with South Korea’s Shilla and Germany’s Heinemann among the bidders.

Lotte’s proposal, however, “stood out” the most, CAG said in today’s statement, pointing to the company’s marketing prowess and track record with other large projects. 

The proposal from Lotte stood out with its strong omni-channel and marketing ideas which will propel CAG’s travel retail strategy forward … it has a proven track record of operating at a scale similar to that at Changi Airport and possesses deep consumer understanding,” it said in the statement. 

Related story:

DFS Group out of liquor, tobacco business at Changi after nearly 40 years.



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